Publish-editorial — The campaign for income tax returns has begun. The French know that the rents collected are taxable but there is a legal way to invest in real estate without paying taxes. This method consists of buying the bare ownership of shares in real estate investment companies (SCPI). How to invest your money in real estate without paying taxes, this is what we will see.
What is real estate taxation?
Property taxation is made up of two elements: income tax (IRPP) and property wealth tax (IFI). Property income, that is to say the rents collected and the dividends paid by performance SCPIs, are subject to income tax at the marginal tax rate (TMI). The latter reaches 45% for the highest slice.
Residential and investment property is also subject to the IFI, as are SCPI shares. Taxpayers must take into account all real estate assets held directly or indirectly. If their net worth on January 1, 2022 exceeds 1.3 million euros, the IFI is due from 800,000 euros.
As noted Veronique Baronone of the founding partners of The Central SCPI (www.centraledesscpi.com), the first French digital savings network:
“French property taxes can be heavy. This is why more and more clients are calling us on 01.44.56.00.23 to limit it. In this case, we advise them to buy their shares of SCPI in temporary dismemberment of ownership and more particularly in bare ownership. “
Why SCPIs in dismemberment make it possible to invest in real estate without paying taxes?
Full ownership of a real estate asset is the sum of usufruct and bare ownership. Usufruct is the right to use property and to receive income from it, without owning it. Bare ownership makes it possible to dispose of the property and to proceed with its sale. This is called dismemberment.
As it is the usufructuary who receives the rents or the dividends, the bare owner has no tax to pay on his income. The same goes for the IFI.
Thus, an associate of SCPI shares in bare ownership will have no tax to pay. He will also buy his shares cheaper since the rents will be collected by the usufructuary. This is what the technique of buying SCPI in dismemberment.
Investing in the bare ownership of SCPI shares allows you to increase your assets since, after the dismemberment of ownership, the investor will recover full ownership of the shares and will then receive his dividends. Note, however, that it is not possible to buy the bare ownership of SCPI shares on credit since the banks do not grant financing for this type of operation.
Which SCPI in dismemberment to choose?
The price of the bare ownership of SCPI shares varies according to their holding period. The shorter it is, the higher the price will be. The distribution keys between usufruct and bare ownership differ according to each management company but generally oscillate between a discount of a little less than 20% for a 5-year dismemberment, about 30% of discount for 10 years, 35 to 40% for 15 years and 40 to 45% for a 20-year dismemberment.
The number of options for buying bare properties being considerable, we will limit ourselves to three SCPIs with a yield over ten years: SCPI Activimmothe SCPI Pierval Health and the Primopierre SCPI.
The SCPI Activimmomanaged by Alderan, offers a discount of 35% over ten years. Activimmo is a 100% French logistics SCPI. This variable-capital return SCPI is one of the best SCPIs because of its positioning geared towards the development of e-commerce.
For its part, the SCPI Pierval Healthmanaged by Euryale Asset Management, has a discount of 33% over ten years. Pierval Health is a healthcare SCPI invested in seven European countries. It is a fund-of-portfolio SCPI compatible with long-term investment since healthcare real estate leases are the longest on the business real estate market.
Finally, let’s look at the Primopierre SCPImanaged by Primonial REIM. Primstone makes it possible to buy its bare ownership over ten years at a discount of 30% of its share price. This SCPI specializes in offices and more particularly in offices in the Ile-de-France region. Its capitalization exceeds three billion euros.
Where to buy the best SCPIs in dismemberment so as not to pay taxes?
Investing in SCPI in dismemberment is an obstacle course when acting alone. Indeed, there are a very large number of parameters to take into account.
This is why we must trust SCPI specialists such as those at The Central SCPI to confirm his purchase (www.centraledesscpi.com / 01.44.56.00.23). These well-known and recognized specialists distribute all SCPIs on the market and connect usufructuaries with bare owners. This service does not cost more for both parties since the price of SCPI shares is the same regardless of the distribution channel.
The independence of these consultants also allows them to work without the slightest commercial pressure and to make their SCPI choices with full knowledge of the facts after having analyzed all those on the market.
The good plan SCPI Dismemberment of La Centrale des SCPI: “It is possible to buy several SCPIs in dismemberment over different periods in order to play on the discounts and obtain an optimized SCPI portfolio”
In this period of the beginning of tax declarations, the French are wondering how to lighten their tax burden. In order to do this in the simplest way possible, the purchase of bare ownership of performance SCPI shares is the best solution.
To carry out this project calmly, it is necessary to be advised by SCPI specialists, such as those of The Central SCPI (01.44.56.00.23), the first SCPI comparator on the market.
Investing your money in real estate increases your purchasing power and your assets. Provided you do it in an optimized way, that is to say by choosing SCPIs in dismemberment to obtain a good return without paying taxes as the experts of The Central SCPI.
Warning: lInvestment in an SCPI is not guaranteed, both from the point of view of the dividends received and that of the preservation of capital. SCPIs depend on fluctuations in the real estate markets. Before any decision to purchase SCPI shares, get advice from a professional to be certain that this investment corresponds to your asset profile. Finally, like any real estate investment, take into account the fact that SCPIs are long-term investments whose minimum holding period cannot be less than eight years.
Content offered by the Central SCPI
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